Highlights
What policies?
Trumpflation
Please note: All data, figures & graphs below are valid as of November 11th. All trading carries risk. Only risk capital you are prepared to lose.
What Policies?
The market is seeing some pretty wild fluctuations at the moment. People are really not sure what to expect under this new President-elect.
Many of his campaign promises were so off the wall that he'll probably be forced to call off some of them and trade them in for something a bit more renewable.
Thankfully, the ban on Muslims has already been taken off of his website.
The bottom line is, we don't know what he's going to do and that's what's been causing all the commotion in the markets as investors frantically try to adjust themselves for what's to come.
Trump's campaign did say yesterday that they plan to dismantle the Dodd-Frank consumer protection act. The markets were pretty happy about this since it means less regulation on their turf.
They also said that they are considering hiring JPM CEO Jamie Dimon as the Treasury Secretary. He is definitely qualified but I doubt he'll accept the position. He already has a great job and has no need for political headaches.
One thing is clear, this guy is going to be great for day traders. Every word from his mouth has potential to cause vast swings in the market and create plenty of trading opportunities.
Trumpflation
One idea gaining traction is that Trump will be able to cause inflation. Something that the US has been trying to do since 2008.
The theory is that he'll be able to make a smooth transition from monetary stimulus to fiscal stimulus. Meaning, to shift some of the weight off the Fed and promote growth through government spending.
This is something that Madam Christine Lagarde from the IMF has been begging for over the last year. Virtually all economists agree that this shift needs to take place since central banks have been bearing most of the weight since the crisis while the politicians sit on their hands.
Silver and Gold
With that, it's hard to understand why gold is dropping. Gold has always been the number one inflation hedge trade. So if inflation expectations are going high, why is gold going low?
Furthermore, all the other metals are rising. Trump's plans to rebuild infrastructure are having a positive affect on a lot of the metals.
Here we can see that there is a massive divergence in the metals market with silver holding, gold dropping, copper, wow look at copper!!!
According to Christos in our dealing desk, we had a lot of clients who made money on copper since the elections. Many positions were closed at their take profit levels and some manually.
However, according to the crowd the direction may be about to change. The sentiment meter in the platform has recently turned to 56% selling...
This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation.
Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.